No one has money. You may think other people have money, but they don’t.
For each generation, it’s the same.
They don’t get taught how money works from K-12.
High school graduates head off to college. They don’t learn how money works there, either.
College graduates enter the workforce and start earning a paycheck… and spending their paycheck.
Soon, they enter a cycle of foolish spending. Earn a paycheck. Spend a paycheck. Earn a paycheck. Spend a paycheck.
They join the hundreds of millions living paycheck-to-paycheck. Always spending. Barely saving, if at all.
When retirement finally arrives or accidents or illness occur later in life, a terrible realization dawns on them…
They have no money.
According to a recent survey…1
◼ Gen Z adults have saved an average of $37,000 for retirement ◼ Millennials have saved an average of $63,300 for retirement ◼ Gen-Xers have saved an average of $98,900 for retirement ◼ Baby Boomers have saved an average of $138,900 for retirement
Only Gen Z and Millennials are even close to being on track for retirement. Gen-Xers and Baby Boomers fall short of bare minimum savings by over half.
It’s not for lack of income—many Americans make enough to put their money to work.
Rather, it’s because they lack knowledge. They just don’t understand how money works beyond earning and spending.
The takeaway? If you’re a Gen-Xer or Baby Boomer, the time to start building wealth is now.
But for your income and skills to translate into wealth, you need tools. You need concepts like…
◼ The Power of Compound Interest
◼ The Time Value of Money
◼ Wealth Equivalency
These concepts will help you answer questions like…
◼ What interest rate do I need to close the gap between my savings and my retirement goals?
◼ How much do I need to save each month to retire with $1 million?
◼ Should you save a nest egg or start a business?
If those are answers you need to get, ask me how you can learn. I’d be happy to introduce you to resources that can set you on the right path towards discovering how money works and building wealth.
¹ “Here’s how much money each generation has saved for retirement,” Nicholas Vega, CNBC Make It, Aug 20 2021, https://www.cnbc.com/2021/08/20/how-much-each-generation-saves-for-retirement.html